Visa Inc. will pay American Express Co. up to $2.25 billion to settle a lawsuit alleging Visa illegally stifled competition to protect its position as the largest U.S. credit card network.

The truce announced Wednesday rids Visa of a potential albatross before the San Francisco-based company's initial public offering of stock, which is expected to occur early next year.

Besides raising financial uncertainties, the case threatened to raise embarrassing questions about Visa's past business practices with a September trial date looming.

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